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From Britta Becks
FRANKFURT (Dow Jones) – Thanks to the acquisition of Sprint in the USA, Deutsche Telekom AG once again achieved impressive growth in the first quarter and exceeded analyst forecasts. The DAX group raised the annual outlook. For 2021, Telekom is now assuming an adjusted EBITDA AL of more than 37 billion euros, after previously forecasting around 37 billion euros. For the free cash flow AL, it raised the forecast to more than 8 of around 8 billion euros.
In the first quarter, Telekom made a leap in sales with the acquisition of the former competitor Sprint and earned significantly more operationally than in the previous year. Income climbed 32.3 percent to 26.4 billion euros, and adjusted EBITDA AL by 41.3 percent to 9.2 billion euros. Analysts had expected both indicators to be 25.595 billion and 8.848 billion euros, respectively, lower.
But also organically, i.e. without taking into account the exchange rate effects and the Sprint acquisition, Telekom was able to grow in the quarter: by 7.1 percent in sales and by 8.3 percent in adjusted EBITDA AL.
Adjusted net income for the period from January to March reached 1.201 billion euros, a decrease of 6.5 percent. Unadjusted, it reached 936 (916) million euros. Analysts had expected here with 887 million euros. The free cash flow AL rose to 2.585 from 1.287 billion euros in the previous year. Here the forecast was 1.808 billion euros.
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(END) Dow Jones Newswires
May 12, 2021 01:06 ET (05:06 GMT)